Nigeria’s Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM) Mr Olusegun Ayo Omosehin has emphasized the need for insurance companies in Nigeria to strive towards expanding their business scope and influence beyond the shores of the country if the market must maintain its dominance of the African’s insurance landscape.
Mr Omosehin said that one of the sure ways of achieving this is for companies to develop products and services which would be needed by consumers in other African countries.
MR Osehehin spoke at a workshop for insurance companies in the country organized by the Nigerian Insurance Industry Committee on African Continental Free Trade Area (AFCFTA) which held in Lagos at the weekend.
According to him, “by removing trade barriers, we can develop cross-border insurance products, attract foreign investment, and promote economic development. With the removal of trade barriers, insurance companies can develop and offer cross- border insurance products, including coverage for businesses operating in multiple African countries, which can enhance the attractiveness of Nigerian insurers to multinational clients. This will also bring about increased investment as it is likely to attract foreign direct investment. This influx of capital can boost the insurance sector by providing the necessary funds for innovation, technology adoption, and capacity building in the industry” adding that “we are also not oblivious of different regulatory environment across various African countries, creating complexities in compliance and operational standards. In this regard, we are committed to bilateral negotiations underpinned by Mutual Recognition”.
Mr Omosehin who was represented at the event by the Deputy Commissioner Technical, Dr. Usman Jankara went further to say that AfCFTA presents a transformative opportunity for Nigeria and our insurance industry to expand into new markets, drive growth, and create prosperity. The workshop he said is a call to action, urging us to strategize, innovate, and collaborate to ensure competitiveness of the Nigerian insurance industry to enable it capitalize on AfCFTA’s benefits. As we explore the opportunities presented by AfCFTA, let us acknowledge the immense potential of Nigerian insurance industry. With the right strategy and collaboration, we can unlock new markets, drive economic growth, and improve the lives of Nigerians.
The AfCFTA is expected to create the largest free trade area in the world, boosting economic growth, trade, investment, and economic integration. For the Nigerian insurance industry, this is an opportunity to expand our horizons, continually innovate, and position ourselves for successful maximization of the benefits.
Addressing participants at the workshop, chairperson of the Nigerian Insurance Industry Committee on African Continental Free Trade Area (NII-AFCFTA Committee), Mrs. Ekeoma Ezeibe noted that of particular consequence for Nigeria’s insurance sector, AfCFTA aims to promote industrialization and diversification of economies by encouraging the development of regional value chains and manufacturing sector. The anticipation she emphasized is that diversified economic activity and sectors should lead to increased demand for insurance.
She recalled that it was for this reason that the National Insurance Commission on 10th May, 2022 set up the Nigerian Insurance Industry Committee on African Continental Free Trade Area (NII-AfCFTA Committee), a Committee, which among other things, co-ordinate the Nigerian insurance industry’s strategic response to AfCFTA as well as liaise with the AfCFTA Secretariat and other bodies in the implementation of the Agreement in the Nigerian insurance industry.
“And as AfCFTA eventually harmonizes trade and investment regulations across member countries, it is critical that the insurance sector of Africa’s largest economy, Nigeria, begins to contemplate the following potential opportunities and challenges in a continent-wide insurance regulatory regime: harmonisation of insurance regulations among state parties in order to achieve market confidence and growth and a regulatory balance that protects consumers, multilateralism and Reciprocity, Standardisation of practice, cross-boarder opportunities and risks, trade in Services without barrier, intra-continental movement of Personnel as well as creation of a single big market as against a near stagnant market” Mrs Ezeibe who is a council member of the Nigerian Council of Registered Insurance Brokers (NCRIB) said.
AfCFTA member-states envision an eventual single-market for goods, services, capital, and to enable the intra-regional free movement of persons.
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